The 2026 budget and levy were approved at the city council’s December 1 meeting. Councilman Steve Hall was absent.
City Administrator Ryan Throckmorton, during the Truth and Taxation public hearing, reviewed highpoints from 2025. This hearing is required by the state for the presentation of the final levy resolution. Some of the highpoints he noted include the implementation of the 2025 Capital Improvement Project, looking into needed upgrades for the wastewater treatment facility, acquisition of former POP site and floodway property, preliminary assessment of swimming pool, collaboration with Lanesboro on EDA position, update of Community Comprehensive Plan, and work with Fillmore County to update the county wide Hazard Mitigation Plan.
The Capital Improvement Plan includes the order for two ambulances (at least one to arrive in 2026), purchase of a mower for the cemetery, city hall repairs, pond dredging (est. $80,000), and trail maintenance. Throckmorton reviewed the city’s vehicle and equipment replacement schedule and the funding set aside for future replacements each year.
The total levy approved for taxes collectable in 2026 is $1,345,263, which is an increase of $70,474 or 5.53% over the 2025 levy. Throckmorton said the average levy increase for Minnesota cities is 8.7%.
Contributing to the levy increase is an 18.7% increase in health insurance costs and a 3.5% cost of living increase for employees. TIF #9 (B & B Bowl redevelopment) will be decertified at the end of 2025; it is estimated to equal 1% of the tax base.
Local Government Aid for 2026 will be $539,709, or a $406 increase. Fifty-three percent of the city’s revenue for 2026 will come from the levy; state aid contributes 21% and police/fire contribute 12%. Twenty-five percent of the city’s expense will be for general government, 20% for police, 16% for streets, and 12% for bond payments.
The city’s total tax capacity for 2026 increased by 7.48%. The Preston tax rate for 2026 is 92%, which is about 1.7% lower than 2025. Throckmorton noted the estimated market value for the average residential property has doubled since 2019.
Debbie McCabe and Linda Means spoke briefly about their proposed property taxes for 2026. They each own a townhome, part of a the same twin home. McCabe questioned the 23% increase on her statement. Means said the Preston portion on her statement was up over $400. Throckmorton said he would meet with each of them and discuss the tax statements before referring them to the county assessor.
Other Business in Brief
- One of the city’s squad cars was in a collision with a deer last week. The squad was due to be replaced next year. The insurance carrier may consider it a total loss if the repair estimate exceeds the value of the unit. Dodge of Burnsville has a 2026 Durango Pursuit AWD on its lot; the total delivered price with options will be $43,813. Most of the current equipment will fit into the new vehicle. Purchase of the new vehicle was approved contingent on League of Minnesota Cities Insurance Trust’s decision to total the damaged vehicle.
- The Fillmore County Journal was approved as the official newspaper for 2026. There will be a 5% increase on legal notices, TIF reports, budget and property taxes, annual financial report, and boxed ads. The cost for classified ads will remain unchanged.
- The rental application and agreement with Preston Historical Society for the Depot/Museum was approved.
- The Utility Commission accepted the lowest bid from Wapasha Construction Company in the amount of $395,900 for the RBC (rotating biological contractors) replacement at the wastewater treatment facility. Cash reserves will be used to pay for the RBC replacement.
- The Park Board approved a quote from an engineering firm recommended by Burbach Aquatics to assess the main portion of the swimming pool (use of ground-penetrating radar to identify voids under the vessel and to evaluate cracking). The firm working with Burbach will determine if the main pool vessel is worth saving.
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